KQED's Forum Is The Student Loan Safety Net Unraveling?
Nov 4, 2025
Join Evan White, Executive Director of the California Policy Lab, as he highlights alarming student loan delinquency rates in California. Julie Margetta Morgan, President of The Century Foundation, discusses the confusing landscape of loan forgiveness, while Mike Pierce from Protect Borrowers reveals the issues with private servicers. They tackle the impact of pandemic relief, recent legislative changes, and how unstable policies threaten borrower protections. Real-life experiences emphasize the urgent need for reform in the student loan system.
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Surge In Delinquencies After Pause
- California student loan delinquency jumped to about 11% after the payment pause ended and is now higher than any debt type in two decades.
- Evan White warns delinquencies could climb toward pre-pandemic levels around one-third of borrowers.
Private Servicers Are A Core Problem
- The federal government relies on private loan servicers to manage billing and enrollments, creating systemic problems.
- Mike Pierce argues that privatized servicing is a root cause of repeated borrower harm and errors.
Programs Worked In Theory, Not In Practice
- Public Service Loan Forgiveness (PSLF) and income-driven plans aim to make education affordable or incentivize public service careers.
- Julie Margetta Morgan cautions both programs have suffered catastrophic servicing and implementation failures.